LTV for Existing Homeowners

kriss_boy

Our mortgage is about 76K but I fear our property will only sell for 85k when we advertise it in the summer. (We can save a further 2/3K from now till then).

Is this treated in the same way an FTBs 'deposit' when we trade up? ie, we will basically only have about 7/8K equity for the next property which isnt much at all.

Our combined income is 45K however which means a 130K mortgage very affordable. But is the lack of equity/deposit going to be a stumbling block?

Im perhaps hoping our good credit rating and desire for a smallish mortgage will compensate the lack of deposit but perhaps Im being niave...

catieeb06

Well whatever property you decide to buy, you will need at least 10% deposit. So with only a possibility of around £10,000 savings+equity you would need to be looking in the region of around £100-£110,000.

beecher2

Yes, you'd only have a deposit of about 7 or 8k which isn't enough to trade up. You need to get saving before you can move - minimum of 10% deposit.

kriss_boy

Ok, I feared this would be the case!

Its been the most expensive last year of our lives- bought two cars and spent a month in Australia. I suppose this year its save, save, save!!!